What is the settlement period?
It is the time it takes for stocks or money to reach their new destination after a financial transaction. During this process, the ownership of the securities is transferred from the seller to the buyer, and cash payment from the buyer to the seller is settled.
What is the T+1 rule?
The T+1 rule is the standard settlement cycle for securities transactions in most countries, including the United States. It implies that the transaction is settled one business day after the transaction date. During this period, you will see your money marked as "pending cash", and after one settlement day, it will be reflected in your "buying power", ready for reinvestment or withdrawal.
The T+1 rule is crucial for investors, as during this time, money and securities will be on hold.
What are unsettled funds?
Unsettled Funds are any funds in your account that are still being processed. These funds could be from a Deposit, a Sell Order, etc.
Do you have any additional questions regarding Trade settlements? You can contact our support team here. We're here to help!